Archive for the ‘parents’ Category

financial roots: your fiscal beliefs, fears, confidence must come from … where?
September 5, 2007

In preparing for another financial planner interview this week, I imagined how a certain discussion could play-out regarding our debt:

Planner to me: So do you have credit card debt?

Me: Sure do.

Planner: So why don’t you pay it off right now or at least increase your payments?

Me: Because the thought of having zero dinero in our emergency reserves makes me vomit.

For my family right now, it comes down to rebuilding habit.

For a while, it’s been ‘pay off the card’. Then a perceived emergency that warrants use of it occurs again (we wouldn’t have much in emergency reserves since we focused on debt pay-off).

And the cycle played out many times in our lives.

So I shared this tact with husband Sean – to which he concurred on changing focus. He was creeped-out by the card balance (predominantly tax payments) but appreciated the underlying philosophy: build up cash reserves to prevent credit card usage in emergencies.

Then comes the self-reflection:
What has the most impact on one’s financial beliefs? Is it more than just live-and-learn as an adult?

That must be a complex answer for everyone.

Yet these two childhood memories stand out as canyon-wide influences on my financial beliefs:

  • family thrived with their business during the Oklahoma oil boom;
  • family sank deep into fiscal ick-ville when that boom went bust

Don’t wanna go back there … ever.

So what’s the first step – forming a positive vision to strive toward (vs always looking back at that which we want to avoid)?

More from:

  • WiseBread’s Sarah Winfrey outlines those wise, internal questions that can frame what we really want. …joy? chocolate? companionship? love? a Twinkie bath? Winfrey’s reflective approach proved a useful tool to carve out purpose — financial or otherwise.
  • Request:
    Please treat yourself to Jonny Goldstein‘s above Twinkie bath clip, 3 minutes. The ribs crack from cackling every time.

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parents’ retirement planning & reality checks
August 10, 2007

Over 50% of American retirees will be wholly dependent on their relatives & welfare subsidies per Richard Paul Evans.

Regarding one’s parents, what are effective ways to plan for this? Surely it’s a matter of good communications with one’s folks, education on potential needs like senior healthcare, and taking incremental steps to prepare (and living within one’s means).

I’d rather have these potentially awkward talks with my parents now – and really enjoy our time on Earth (vs having high-octane financial stress at times when you’d rather be an emotional companion with them).